Chinese real estate developer misses debt deadline

Fitch Ratings agency on Thursday downgraded Evergrande to a “restricted default” ranking after the company missed its extended debt deadline earlier on Monday. The second-largest Chinese property developer has about $300 billion in liabilities and owes $19 billion to foreign bondholders. Fitch’s ranking means the firm failed to meet its financial obligations and could further impact the company’s discussions with investors.

What sparked the default? Evergrande began struggling even more last year after China imposed new regulations on real estate–related borrowing. It had announced Friday there was no guarantee it would have the funds to meet its obligations, triggering a further crash in its share prices. But the Chinese government is stepping in to help Evergrande restructure its debt, and the default had minimal effect on local or international stock markets.

Dig deeper: Read Carolina Lumetta’s report in The Sift on the U.S. stock market’s decline in September.